ECON 392(S) Finance and Capital Markets

This course gives a survey of international financial markets and exchange rates. We begin by exploring the role of capital markets in the flow-of-funds between savers and investors, their role in risk redistribution and continue with the analysis of foreign currency markets. Topics include: risk and return tradeoffs, models of stock and bond prices, the capital asset pricing model, financial derivatives (options, futures, currency swaps), hedging, "efficient markets" theories of financial markets and order flow analysis in currency markets.
Evaluation will be based on problem sets, midterm, final, a project and class participation.
Prerequisites: Economics 251 and either Statistics 101 or 201 or Economic 253 or Economics 255. Preference to majors. Enrollment limit: 25 (expected: 25).

Hour: SAVASER